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Tuesday, March 23, 2010

DOW 12,000 By Thanksgiving

What a happy market we are having.
Already 10% above the recent February low of 9835. Today at 10,838. 11,000 is within spitting distance.
The next 10% will be slower, but I expect 12,000 before Thanksgiving.

Why is the market going up? Because business is very good.
The economy is healthy.
High unemployment is good for business because it keeps wages down. The overheated economy of the past was not healthy. Overstimulation is not healthy. There should be slack in labor markets. There should be a large pool of potential employees.
The inflation of an overheated ecomony looks good but is really destructive of prosperity.
I hope this low inflation environment will continue. Then we can all muddle through and have real prosperity.
Unemployment of 8% should be the new standard of full employment. If government can adjust to that reality, all will be well.

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